- Anti-fraud platform Feedzai has teamed up with account-to-account (A2A) platform Form3.
- Courtesy of the partnership, Feedzai will power Form3’s new authorized push payment fraud (APP) fraud prevention solution.
- Founded in 2011, Feedzai made its Finovate debut at FinovateEurope in 2014.
Anti-fraud and financial crime software company Feedzai will power the new authorized push payment fraud (APP fraud) prevention solution from account-to-account (A2A) platform Form3. Built with supervised machine learning, the new offering from Form3 takes advantage of collaborative intelligence to determine the risk of a payment in real-time by understanding the behavior of both the sender and the recipient.
The technology acknowledges that understanding the recipient of a payment is just as important as understanding the sender when it comes to preventing fraud, particularly APP fraud. This is because APP fraud involves fraudsters tricking legitimate accountholders into sending payments to illegitimate accounts owned or accessed by the fraudster.
Feedzai CPO Pedro Barata explained that both regulation and emergent fraud threats are driving innovation in the payment fraud space. Barata noted in particular new regulations later this year that will mandate reimbursement for victims of APP fraud. He underscored that this would provide additional incentive for banks to embrace new anti-fraud technologies. “By combining the expertise of Feedzai and Form3, we can drastically reduce the level of vulnerability in the payment process and give our customers the real-time intelligence that they need to stop fraudsters in their tracks.”
The innovations in fraud prevention are also being driven by positive developments in fintech like real-time payments. As more fraudsters see real-time payments as a potential way to target consumers, businesses need to respond with technologies and anti-fraud solutions that close security gaps and respond to emerging threats like APP fraud.
“The best way to tackle the rise of APP fraud is the use of collaborative intelligence and cutting edge technologies that allow the real-time identification of scams within the payment message,” Form3 CEO Mike Walters said.
A Finovate alum since its debut at FinovateEurope in 2014, Feedzai today counts 80% of the world’s Fortune 500 among its customers. Founded in 2011 and headquartered in San Mateo, California, Feedzai now has more than 600 employees, maintains 10 offices around the world, and supports operations in 190 countries. The risk management tool provider has raised more than $277 million in funding, according to Crunchbase. Nuno Sebastiao is CEO.